As you may know, 2016 brought many exciting changes for Meredith Corporation. Our company’s continued growth would not be possible without your contributions, and we are extremely thankful for your support.
Last year, we made the groundbreaking decision to acquire Time Inc. Historically, Time Inc. has been an industry leader, and we are pleased to be the new parent company of many successful publications.
Overall, Meredith made revenue of $418 million in the quarter and an operating profit of $63 million. Magazine-related advertising had revenues of $247 million, with a 7 percent increase in digital. We cut costs by $25 million.
Moving forward, the horizon is rich with opportunity. As an organization, we intend to take full advantage of this time of growth and revival. To ensure return on our investments, we plan to conduct a complete portfolio review of our combined media assets and divest those which might be more valuable to another operator. We believe in staying true to publications that resonate with our audiences and are core to our business.
In the upcoming year, we project a number of significant successes. First, the acquisition of Time, Inc. will add at least $200 million to our balance sheet. Costs are expected to decrease by $400 million as a result of our new portfolio.
Though we are in the process of making many changes, we promise to continue to produce quality content for our readers and develop innovative digital media strategies. Nothing is more important to us than our audiences, and we are dedicated to consistent improvement to create the best products we can.
On behalf of Meredith Corporation, thank you again for your investment in our company.
President and CEO
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